According to the Tiebout Hypothesis

question 80

Multiple Choice

According to the Tiebout hypothesis,

• A) an optimal (or most efficient) level of output exists for every public good.
• B) an efficient mix of public goods is produced when local land/housing prices and taxes reflect consumer preferences.
• C) a good or service is usually so costly that its provision generally does not depend on whether any single person pays.
• D) under certain conditions, when externalities are present, private parties can arrive at the efficient solution without government involvement.

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Definitions:

Independent Variables

Variables in an experiment or model that are manipulated to observe their effect on dependent variables.

Degrees Of Freedom

The quantity of independent values or measures that can be allocated to a statistical distribution.

Critical Value

A point on the scale of the test statistic beyond which we reject the null hypothesis; it is the threshold at which the level of significance is set.

Regression Analysis

A statistical method for estimating the relationships among variables, often used to predict the value of one variable based on others.